Kevin Hassett, director of the National Economic Council (NEC) at the White House, proposed on Thursday to establish guaranteed purchase agreements for U.S. oil with U.S. allies as a mechanism to strengthen their energy security amid the crisis in the Strait of Hormuz.
"If we establish guaranteed purchase agreements with our allies to ensure they have a secure supply of American oil, they would have a much more secure energy supply, and that would be very, very good for reducing the risks their countries face," Hassett stated in a live broadcast from the White House gardens.
The statements were made one day after the president's national address by Donald Trump, where he claimed that the U.S. produces more oil and gas than Saudi Arabia and Russia combined, a fact supported by figures from the Department of Energy that place the total production of oil and liquid fuels at 24 million barrels per day.
Hassett was specifically asked whether allies have expressed interest in purchasing U.S. oil and gas in the context of the conflict with Iran, and he responded affirmatively.
The Strait of Hormuz is a strategic route through which between 20% and 25% of the world's maritime oil passes. Tensions in the area have escalated in recent weeks. Iran announced a temporary reopening of the strait for two weeks, although it closed the route again that same day after a new attack.
In parallel, the U.S. liquefied natural gas (LNG) sector has reached a record of 40 million tons annually in exports, reinforcing the U.S. position as an alternative energy supplier for its allies.
In that context, Commonwealth LNG finalized agreements with Aramco Trading Americas for the supply of liquefied natural gas.
Iran, for its part, has conditioned stability in the strait on the collection of a two million dollar transit toll per ship, a demand that could indefinitely raise oil prices.
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